HDFC Bank is likely to see inflows of $650 million following FTSE’s semi-annual index review, while stocks like Brookfield REIT and Hatsun Agro Product can see outflows of up to $11 million, according to IIFL Alternative Research.
FTSE will rejig its indices on September 15 as part of its semi-annual review. The changes will be effective from September 18.
In a note, IIFL Alternative Research said FTSE will increase HDFC Bank’s weightage in 3 tranches.
The stock is likely to see inflows of $f650 million. This includes inflows due to FTSE, Sensex and Wisdom Tree ETF inflows, it added.
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Inclusion or increase in weightage of a stock in global indices leads to inflows from passive funds which track that particular index. Conversely, exclusion from FTSE, MSCI and other global indices usually leads to outflows.
IIFL Alternative Research further said that AIA Engineering will see inflows of $30 million and Syngene of $20 million due to their inclusion in the FTSE All World Index.
Stocks set to be included in FTSE All Cap Index include RVNL, NMDC Steel, Data Patterns, Ramkrishna Forgings, Tamilnad Mercantile Bank, Apar Industries and Mazagon Dock.
These stocks can see inflows of over $10 million each, IIFL added.
Other inclusions in the FTSE All Cap Index are Capri Global, Safari Industries, Himadri Speciality, Titagarh Rail, JBM Auto, Usha Martin, Olectra Greentech, ION Exchange, Rainbow Children's Medicare and Kirloskar Oil.
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However, Brookfield REIT is expected to see outflows of $11 million due to its exclusion from the FTSE All Cap Index, it said.
Similarly, Hatsun Agro Product can see outflows of $7 million, IIFL Alternative Research said.
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